2023-08-02 03:24:48
Brazilian food company Brasil Foods (BRF) has formalized a joint venture with the Halal Products Development Company, which is wholly owned by the Saudi Public Investment Fund, according to a statement sent to Archyde.com.
The Brazilian company said that the intention to establish the joint venture was announced, in October 2022, adding that its stake in the new company will be 70 percent, while the Halal Products Development Company will own 30 percent.
The joint venture announcement confirms BRF’s direction. To move from the role of a pure exporter to the role of the local supplier of meat products in the country.
Saudi Arabia imported 564,476 tons of Brazilian chicken products on average annually in the decade ending in 2022, according to data compiled by the Arab-Brazilian Chamber of Commerce. However, last year it bought a smaller quantity of 340,000 tons, ranking it the fourth best chicken destination in Brazil after the UAE, Japan and China.
“Brf,” she said. The main objective of the joint venture is to develop the Halal meat industry in the region.
The formalization of the joint venture comes days after the Saudi Agricultural Investment and Livestock Production Company (SALIC), a company wholly owned by the Saudi Public Investment Fund, acquired a 10.7 percent stake in BRF through an additional stake offering in Saudi Arabia’s long-term goal framework to secure food security for the Kingdom.
As part of the joint venture, BRF said it would establish a “Halal Business Headquarters, Halal Food Innovation Center and Center of Excellence” at an as-yet-unspecified location.
It did not clarify the amount that the joint venture intends to invest in this activity.
BRF has exported its products to the Middle East for more than 50 years. Starting in 2009, it established its own distribution network in Saudi Arabia where it also acquired a food processing unit three years ago.
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